WAYNE, Pa., March 26, 2014 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Weight Watchers International, Inc. (NYSE: WTW) ("Weight Watchers" or the "Company") between February 14, 2012 and October 30, 2013, inclusive (the "Class Period").
Weight Watchers shareholders may, no later than May 20, 2014, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Weight Watchers and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/wtw. You may also email Mr. Maniskas at email@example.com.
Weight Watchers is a provider of weight management services, operating globally through a network of Company-owned and franchise operations. The Complaint alleges that, throughout the Class Period, Weight Watchers made materially false and misleading statements and/or concealed material adverse facts regarding the Company's business and operations. More specifically, the Complaint charges Weight Watchers and certain of its executive officers with violations of the Securities Exchange Act of 1934, and alleges that the defendants made false and misleading statements that overstated the Company's prospects and understated the level of competition it faced from free weight loss apps, causing Plaintiff and other members of the Class to purchase Weight Watchers common stock at artificially inflated prices.
On February 14, 2012, Weight Watchers announced financial results and provided a 2012 earnings guidance range of between $4.20 and $4.60 per share. The Company also announced that it planned to launch a tender offer for up to $720 million of its common stock, and that it separately had agreed to purchase shares held by Artal Group, its controlling shareholder. On February 14, 2012, Weight Watchers common stock was trading at $79 per share. The tender offer closed on March 22, 2012.
On February 13, 2013, Weight Watchers announced its fourth quarter and fiscal 2012 financial results, and disclosed that it expected to earn between $3.50 and $4.00 per share for the year, sharply missing analyst estimates of $4.75 per share. On this news, Weight Watchers' stock fell $9.20 per share, or 17%, to close at $44.91 per share on February 14, 2013.
Finally, on October 30, 2013, the defendants admitted that steep declines in recruitment caused by a wave of free apps were undermining revenues, forcing the Company to indefinitely suspend the regular dividend it had paid to investors since 2006. On this news, Weight Watchers' stock fell an additional $7.81 per share, or over 19%, to close at $32.11 per share on October 31, 2013.
If you are a member of the class, you may, no later than May 20, 2014, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP